Stablecoins: What is All the Fuss About?
The news pages and feeds are full of stories about stablecoins at the moment. For example, Citi has recently announced that they are looking to issue their own stablecoins and their CEO, Jane Fraser, said that stablecoin issuance could reach $3.7 trillion by the end of the decade 1. In the US President Trump has signed into law the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act to establish a regulatory framework for ‘payment’ stablecoin issuers.
Put simply, a stablecoin is a type of cryptocurrency where the value of the digital asset is supposed to be pegged to a reference asset, which is either fiat money, exchange-traded commodities (such as precious metals or industrial metals), or another cryptocurrency, or having its supply regulated by an algorithm.
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